EABL medium term note goes live on Nairobi bourse

Monday, May 8, 2017 16:40

By JAMES NGUNJIRI

EABL Group chairman Charles Muchene (centre) rings the bell during the listing of the EABL’s final series of its corporate bond at the NSE on May 8, 2017. Looking on is Group MD Andrew Cowan (left) and NSE chief executive Geoffrey Odundo. PHOTO | SALATON NJAU | NMG

East African Breweries Limited (EABL) #ticker:EABL has today listed the final series of its corporate bond on the fixed income securities investment segment of the Nairobi Securities Exchange (NSE) #ticker:NSE.

The bond was oversubscribed - recording a 141 per cent subscription and netting Sh8.4 billion against the Sh6 billion on offer.

This is the first corporate bond to trade on the bourse this year, and its listing will provide an avenue for investors who were unable to participate during the offer.

The debt instrument will bear interest at a fixed annual rate of at least 14.17 per cent until maturity on March 28, 2022.

Strained market

EABL Group managing director Andrew Cowan said the issue of the bond had been successful despite considerably constrained liquidity in the money market.

“The response that this note has generated demonstrates the confidence that the market has in the EABL brand. The raised capital will significantly strengthen the business’ position and competitiveness,” said Mr Cowan during the bell-ringing ceremony at the NSE trading floor in Nairobi.